If potential GDP is equal to $600 billion, what does the long-run aggregate supply curve look like?
A) It is a vertical line at a level of GDP above $600 billion.
B) It is a vertical line at $600 billion of GDP.
C) It is a horizontal line at $600 billion of GDP.
D) It is a vertical line at a level of GDP below $600 billion.
B
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As a percentage of GDP, exports are greater than imports for which of the following countries?
A) France B) China C) the United Kingdom D) the United States
Suppose Okun's law holds and a one percentage point increase in the unemployment rate reduces real output by 2% of full-employment output
The expectations-augmented Phillips curve is given by ? = ?e - 2.5 (u - 0.04). Suppose ? = 0.08 and ?e = 0.03. (a) What is the natural rate of unemployment? (b) What is the actual rate of unemployment? (c) How much is actual GDP compared with full-employment GDP?
When the U.S. dollar depreciates relative to foreign currencies this means that ______.
a. the value of the U.S. dollar increases b. foreign currencies depreciate relative to the U.S. dollar c. a dollar can buy fewer units of foreign currency than before d. a dollar can buy more units of foreign currency than before
In the aggregate expenditures model, if aggregate expenditures (AE) are greater than GDP, then:
A. inventory is depleted. B. inventory is accumulated. C. inventory is unchanged. D. employment decreases.